Backorders

Overview

Backorder is an existing feature that allows to sell products which are out of stock in the warehouse when you create an order. You can display the available products for backorders as In Stock, or using a customized message like Available in ‘X’ days. This feature can increase your sales revenue and provides flexibility with selling products which are not available but expected to have stock replenishment within a short timeframe.

Configuration

Backorder can be configured at different levels, like:

  • Store Level Each store can enable/disable the backorder feature. If it is enabled your OMS allows all items to be available for backorder. In case it is disabled, when your OMS receives an order for an SKU that is out of stock, the line is canceled.
  • Order Item Level Order Items that do not allow a backorder are canceled if they are out of stock.

If backorder is enabled, your OMS splits a single order into several shipments. Keep in mind that the sourcing logic allows to configure the maximum number of allowed splits, or hold back entirely an order in case some of the lines are out in stock.

The logistic provider needs to be able to support multiple shipment requests for the same order.

Enabling Backorders

Your Implementation Manager can enable the backorder feature by sales channel. All items in the catalog by default accept backorders unless defined differently. If backorders are not allowed, it still is possible to use them by defining allowed order lines with the magento.sales.order_management.create message.

The allowBackorder will be provided within the custom_attributes node for each order line. Then, if the SKU does not have any available stock the order line will be flagged as a backorder and regularly checked for stock updates:

 "custom_attributes": [
                    {
                        "name": "allowBackorders",
                        "value": "true"
                    }
                ]
....

Backorder Exceptions

Set a threshold of days that are used to flag the backorder lines as exceptions in the exception queue. Once the specified day limit is reached the exception is reported with severity High status.

You should use this configuration to manage the FTC compliance. You need to make sure to have a process to get customer consent to comply with FTC regulations:

Example

After taking the customer’s order, you learn that you cannot ship within the time you stated or within 30 days, you must seek the customer’s consent to the delayed shipment. If you cannot obtain the customer’s consent to the delay - either because it is not a situation in which you are permitted to treat the customer’s silence as consent and the customer has not expressly consented to the delay, or because the customer has expressly refused to consent - you must, without being asked, promptly refund all the money the customer paid you for the unshipped merchandise.

Backorder Process

Your OMS checks lines with stock status in backorder and holds them until the stock becomes available. Depending on the payment method, orders with lines on backorder and regular orders have multiple settlements (one for each shipment).

As soon as the order is imported in your OMS and a line is flagged as a backorder, an email is sent to the customer notifying that the item is on backorder.

Take into account that if the line is not defined as backorderable and in your OMS is out of stock, the line is canceled.

OMS backorder flow (no stock available)

No stock available

Backorders are displayed in the allocation queue even if the client is using the default mode (Direct mode), and there is a job that checks three times per day if the stock is available (the job will log all the attempts to the backorder line). Once the stock is updated your OMS automatically adds the orders on backorder back to the flow, and the line gets hard allocated, and the shipment request is created.

OMS backorder flow (stock available after some time)

Stock available after sometime

Payments Process

Re-auth Strategy

An order with backorder lines automatically applies a re-auth strategy to ensure that you are able to capture the money once there is available stock. This process typically takes place every ten days and can be set by your Implementation manager.

Backorders in Admin

For more information on how backorders are displayed on Admin, check the Backorders section in User Guides.

In order to increase visibility for this feature, you can find a label for the backorder, such as:

Label in Admin

Additionally, you can check in the Exceptions & Sourcing Queue view, if one order has the configurable threshold set to automatically cancel backorders not shipped after N days, which have not received stock:

Backorders Excetptiona Allocation Queue